KMI Financial Analysis

Analysis Date: 1/24/2025

Business Model

Kinder Morgan generates revenue primarily through its network of natural gas pipelines, product pipelines, terminals, and CO2 operations

Revenue Sources

• Natural Gas Pipelines (largest segment, includes transport, storage, and gathering)
• Products Pipelines (transporting refined petroleum products)
• Terminals (liquid and bulk terminal operations)
• CO2 (oil production and carbon dioxide transportation)

Revenue Distribution by Channel

• Natural Gas transport volumes: 44,507 BBtu/d
• Products Pipelines volumes: 2,107 MBbl/d

Income Statement Analysis

• Net income increased 12% year-over-year to $667M
• Operating revenues declined slightly by 1.3% to $3,987M
• Adjusted EBITDA increased 7% to $2,063M

Balance Sheet Analysis

• Net Debt-to-Adjusted EBITDA ratio improved to 4.0x from 4.2x
• Strong balance sheet with $88M cash and equivalents

Cash Flow Analysis

• Generated $1.5B in operating cash flow and $738M in free cash flow

Capital Allocation

Company maintains disciplined capital allocation focused on funding growth projects internally while maintaining dividend. Announced $1.7B Trident Intrastate Pipeline Project. Project backlog increased to $8.1B, up nearly 60% from prior quarter.

Management Commentary

Exceptional quarter with very strong operational and financial performance

Robust market fundamentals and new Administration committed to expediting energy infrastructure projects

Secured contracts for three large natural gas projects totaling $5B in costs

Overall Sentiment: Very positive with strong execution and growing opportunities in natural gas infrastructure

Recommendation

Rating: Buy

Reason for Rating: Strong operational performance, growing project backlog, and attractive dividend yield support positive outlook

Disclaimer: This analysis is based on company filings and public information. It is for informational purposes only and not financial advice. Past performance does not guarantee future results.

Generated on: 1/24/2025, 4:21:54 AM